Indonesia’s leading retail company, PT Sumber Alfaria Trijaya Tbk (Alfamart), is preparing to expand its retail network into Bangladesh and Malaysia.

According to Alfamart’s Director, Solihin, as reported by tirto.id during the National Retail Day event at the Ministry of Trade, all preparations for Bangladesh have been completed.

Solihin said, “Bangladesh is the closest market where we have prepared all the necessary infrastructure,” on July 17, 2025.

Understanding Market Fit: Why Bangladesh and Malaysia?

Solihin acknowledged that expanding retail operations overseas requires significant time, but Bangladesh and Malaysia were chosen because their prospective consumers fit Alfamart’s target customer segment.

He added that successful expansion depends on finding the right local partners.

Solihin explained, “We cannot directly hold 100% ownership there, partnerships with local businesses are necessary. These partnerships must be compatible, or the venture will struggle.”

Alfamart’s experience in the Philippines provides important lessons. The company currently operates 2,400 stores there through partnerships with five local business partners under the Alfamart brand.

Solihin described this model as an effective way to enter foreign markets.

Supporting Indonesian MSMEs through Retail Exports

The Ministry of Trade highlights that Alfamart’s overseas expansion also aims to support the export of Indonesian Micro, Small, and Medium Enterprises (MSME) products.

Trade Minister Budi Santoso told Bloomberg Technoz that retail stores abroad are key instruments to facilitate MSME product exports.

“Stores are one of the instruments to make MSME products exportable and accessible overseas,” Santoso said.

Retail as a Vehicle for Exporting Services and Goods

Santoso further told Bloomberg Technoz that Alfamart’s international presence extends beyond product exports to include retail services.

“Currently, there are 2,400 Indonesian retail stores overseas, exporting not just goods but also services,” he said.

This strategy supports both the globalization of Indonesian retail brands and wider market access for MSME products.

PHOTO: ALFAMART

This article was created with AI assistance.